BTC: Daily outlook of the 20k-22k range consolidation
Price has been rejected from the 22500 resistance.
To be fair, this is the most significant resistance we have on the chart right now considering that it is both a daily resistance and the 200W MA which has been acting as support in the past and should now act as resistance.
The way I see it there are two basic scenarios here:
A) Bullish Scenario:
The price manages to consolidate between 20500-22500 while printing higher lows.
This would appear as a mirrored triangle on the charts and it basically means seller exhaustion.
Those formations are usually bullish, thus, once we break 22500 we should see a significant move to the upside.
In every breakout to the upside the first important resistance is usually the most significant, therefore, if 22500 break I think we should be looking for a mean reversion rally to the 28k-32k cluster. Don't fade it too early.
B) Bearish Scenario
Should the price loses 20500 on a daily level (print at least 2 days below 20k) I would expect to see a short consolidation (desperate attempts to reclaim 20k level) followed by a breakdown.
In that case any retest of 20k level is a potential sell or opportunity to close any underwater longs that you may have.
In that case I don't necessarily think we will go very low. Not that we couldn't but in my opinion there's gonna be interest around the 15.8k - 16.6k area. Maybe even a bounce from previous lows (17.6). So, don't leverage your shorts.
If this helped you in any way please give it a like. ty!
To be fair, this is the most significant resistance we have on the chart right now considering that it is both a daily resistance and the 200W MA which has been acting as support in the past and should now act as resistance.
The way I see it there are two basic scenarios here:
A) Bullish Scenario:
The price manages to consolidate between 20500-22500 while printing higher lows.
This would appear as a mirrored triangle on the charts and it basically means seller exhaustion.
Those formations are usually bullish, thus, once we break 22500 we should see a significant move to the upside.
In every breakout to the upside the first important resistance is usually the most significant, therefore, if 22500 break I think we should be looking for a mean reversion rally to the 28k-32k cluster. Don't fade it too early.
B) Bearish Scenario
Should the price loses 20500 on a daily level (print at least 2 days below 20k) I would expect to see a short consolidation (desperate attempts to reclaim 20k level) followed by a breakdown.
In that case any retest of 20k level is a potential sell or opportunity to close any underwater longs that you may have.
In that case I don't necessarily think we will go very low. Not that we couldn't but in my opinion there's gonna be interest around the 15.8k - 16.6k area. Maybe even a bounce from previous lows (17.6). So, don't leverage your shorts.
If this helped you in any way please give it a like. ty!
